# Alabama — State public works payment and performance bond thresholds (Little Miller Acts)

For Alabama, payment bond threshold is Less than $50,000; bond amount is Not less than 50 percent of the contract price; claim deadline is not later than one year from the date of final settlement of the contract; preliminary notice required is Written notice to the surety of the amount claimed to be due and the nature of the claim shall be sent by registered or certified mail 45 days prior to filing suit; statutory citation is Code of Alabama, Title 39, Chapter 1, Division 8, §§39-1-1, verified against its source on 2026-08-17.

- **State:** Alabama _(our reading, not quoted from the source)_
- **Payment bond threshold:** Less than $50,000 _(verified: appears in the quote below)_
- **Bond amount:** Not less than 50 percent of the contract price _(verified: appears in the quote below)_
- **Claim deadline:** not later than one year from the date of final settlement of the contract _(verified: appears in the quote below)_
- **Preliminary notice required:** Written notice to the surety of the amount claimed to be due and the nature of the claim shall be sent by registered or certified mail 45 days prior to filing suit _(verified: appears in the quote below)_
- **Statutory citation:** Code of Alabama, Title 39, Chapter 1, Division 8, §§39-1-1 _(verified: appears in the quote below)_

## What the source says

> ALABAMA Amount of Bond: Not less than 50 percent of the contract price. Labor and Material Covered: All labor, supplies and materials used in connection with the public works contract. Notice Required: Written notice to the surety of the amount claimed to be due and the nature of the claim shall be sent by registered or certified mail 45 days prior to filing suit. Time for Suit: Claimant may institute an action upon the additional bond any time after 45 days after the written notice to the surety but such suit must be commenced not later than one year from the date of final settlement of the contract. Contracts Excluded: Less than $50,000. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Code of Alabama, Title 39, Chapter 1, Division 8, §§39-1-1.

## Source

- https://fullertonlaw.com/50-state-summary-payment-bond-law

Last verified: 2026-08-17. Review by: 2027-08-17.
Part of [State public works payment and performance bond thresholds (Little Miller Acts)](https://referencesource.org/state-public-works-bond-thresholds/).